Governor Ron DeSantis has detailed several regulatory steps the state may take as it considers eliminating property taxes on primary residences in Florida.
“People are being pinched across the economy in a lot of ways,” DeSantis said during Friday’s appearance on FOX Business’ Varney & Co. “We’re doing fine at the state level, but local property taxes are hurting people. The truth is that people are paying more and more because these local governments have overspent. Eventually you have to ask, ‘When is enough, enough?’”
DeSantis reaffirmed his goal of making Florida the first state in the country to eliminate property taxes on homesteaded properties while continuing to forgo a state income tax. The plan, he said, is to “completely” phase out these taxes for primary residences.
Lawmakers are reportedly advancing proposals in the Florida House that include a $500,000 homestead exemption—up to $1 million for seniors—a cap on assessment increases, and the potential for fully eliminating property taxes on homesteads.
According to the Florida Policy Institute (FPI), property taxes generate roughly $55 billion annually. These taxes fund up to 60% of school district budgets in some areas, 17% of municipal revenue, and 18% of county revenue. Eliminating them could require significant adjustments: some projections suggest Florida’s sales tax would need to rise from 6% to 12% to replace the lost revenue.
DeSantis’ office previously vetoed a study proposed in March that would have examined how local governments use property tax income and the potential impacts of reducing it. He noted that any measure placed on the 2026 ballot would require 60% voter approval, and that tax cuts might need to be phased in over time. He also pointed out that non-Florida residents—who own second homes and commercial properties—contribute a large share of the state’s property tax revenue.
“It amounts to roughly 30% of total property tax income,” DeSantis said. “We’re going to do some things, and phasing may be necessary. We want something that can pass and that works.”
The governor added that Florida is now positioned to significantly increase its rainy-day reserves due to strong growth in local property tax collections since 2019, when revenue was estimated at $32 billion.
“Can you imagine budgets increasing by 50 or 60 percent every five or six years?” DeSantis said. “We had a COVID-era boom with people flocking to Florida, which drove up property values. But why should someone buy a home for $350,000, only to find out four years later it’s valued at $1 million—and then get hit with higher property taxes? It’s wrong.”
Source: Florida Insider
